Customers who were exposed to the educational content during the high market volatility after the UK’s Brexit vote, were thirty times less likely to panic and withdraw funds than those who did not view the content.įield reported that the average customer collects around $32 in spare change per month. Their first trial period was as wildly successful as all of their other products. Adopting education as a product line and integral to user retention, the company hired journalists to take on the task of expunging the fear from finance for their customers. Grow Magazine is Acorns internally developed personal finance content site logging 500,000 unique monthly visitors. There’s also a 40 person team standing to answer customer questions via phone, chat, or email should they run into issues. The entire new user registration process takes around 3-5 minutes, Field claimed. In response, Acorns developed in-house technology to make their client onboarding process incredibly easy to use and quick. I’m focused on people who are working hard to achieve the American dream.”įield identified two common roadblocks that traditional financial services firms place in front of first-time investors: high account minimums and poor online user experiences, especially around account opening. They believe that the under $100K segment is their core and they’re sticking with it.ĬEO Noah Kerner recently emphasized this point when he stated, “We’re not a wealth management platform for the 5%… I don’t give a fuck about people who have money. This is not just a starting point for the firm with hopes to move upstream and attract more HNW clients. These customers form 90% of their user base, with 68% of those being Millennials. The company’s fundamental responsibility, Field emphasized, is to help people earning under $100K a year make better financial decisions. Education with Easeįrom the beginning, Acorns has heavily focused on user experience. When Field told the gathered group that they aren’t in the asset accumulation business, but are really consumer branding people, Acorns’ unconventional course to success clicked into place. A brand typically identifies a target market and builds campaigns to deliver on market needs. There are striking parallels between Acorns’ strategy and how retail branding strategists approach growth. In addition to their micro-savings app, Acorns has launched a retirement savings platform (called “Later”), a loyalty program (“Found Money”), a debit card, and an educational content site. Since launching in 2012, they have grown to over 3.5 million accounts and $800 million in AUM. It is a strategy tailor-made for small balance, low opportunity accounts - a market Field believes traditional financial services have ceded to Acorns. Their objective is to simplify the act of becoming an investor and ease them into the habit of building wealth slowly over time. He started off by describing their process for on-boarding new users. In a presentation at the American Banker’s recent Digital Banking Conference 2018, Acorns’ Chief Commercial Officer, Manning Field, delivered some insight into what has driven the company’s impressive growth over the past six years as well as offered some impressive statistics, and took a bit of a victory lap when describing the success of some of their new products The result is growing nest eggs for millions of people who might never have saved anything at all. Then compounding interest and modern portfolio theory can work their magic over the years. Inspired by the mighty oak trees rising from forgotten seeds, the company gathers up many small transactions and deposits them into investment accounts. Some companies have a mission statement and some have a corporate vision while others have both.Īt Acorns, the micro-investing app, they have a mantra. Manning Field, Chief Commercial Officer, Acorns ![]() We are building a consumer brand that sells financial products.” “Acorns is not in the asset accumulation business.
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